sugarkane discovery

Sugarkane Gas Field

The upper zone of possible gas pay in the Sugarloaf-1 well is believed to correlate with the producing zone in a competitor company’s new field discovery well, located 6.6 kilometres west of the Sugarloaf-1 well. The new discovery is known as the Sugarkane Gas Field (“Sugarkane Field”). Adelphi has no interest in the discovery well or the lease holdings immediately surrounding that well. Details of the discovery are not available but the well is vertical and is believed to have been producing gas and condensate continuously for more than eight months.
Although the upper zone of possible pay in the Sugarloaf-1 well has not yet been flow tested, on wire-line log, gas log and regional seismic interpretation grounds, the upper zone in Sugarloaf-1 appears to be within the Sugarkane Field.
Study of regional seismic and well information by Texas Crude Energy Inc. (“TCEI” – operator of the Sugarloaf Joint Venture) suggests the Sugarkane Field is extensive and, as recently announced, the Sugarloaf Joint Venture has now secured a total of around
20,000 acres of leases (of which Adelphi has a 20% interest) which cover portion of the interpreted eastern extension of the Sugarkane Field. These leases provide rights to all depths. The leasing of the Sugarloaf acreage was carried out in competition with several
USA oil and gas companies, including at least one major oil company.

Proposed Sugarloaf-2 Well

As leasing of acreage is now essentially complete, the Sugarloaf Project Operator (TCEI) has proposed the drilling of a second well, located about 1.6 kilometres from the Sugarloaf-1 well.
The well is an exploration well and is proposed to be drilled vertically to just above the target and then horizontally for 5,000 feet (1,524 metres) in the target upper zone of possible gas pay defined in Sugarloaf-1. As already mentioned, this is the zone which is believed to correlate with the producing section in the Sugarkane Field discovery well.
Horizontal drilling has been selected, as successful horizontal wells commonly produce at rates several times that of a vertical well at the same point in the reservoir.
A suitable rig has been identified and subject to Joint Venture approval and execution of relevant documentation, is expected on location about the end of August. Adelphi’s 20% share of dry hole costs are approximately US$720,000 based on a gross estimated
dry hole cost of US$3.6 million for this well. Total well completion costs are estimated at US$1.65 million (Adelphi share US$330,000).
Adelphi has a 20% working interest in the Sugarloaf Project through its wholly-owned US subsidiary Adelphi Energy Texas, Inc.


"The new discovery is known as the Sugarkane Gas Field "


I look at the JVP's and also couch oils claim that TCEI has been on this for a good 15 years.

I understand they did a reprocessing of the 2d's, and then came up with some idea about the play.. i wont go into details on what TCEI did..

then i notice that conocophillips does a massive 2'd run, very extensive and thorough, right along the north of live oak, and right across karnes county.

its then you see that conocophillips buy all the leases in live oak, and TCEI also, and in karnes county.. directy over the secondary (conocophillips) 2d's paths..

next we see kunde 1 well, and it produces.. vertical.. (btw jc didnt mention choke sizes?)

after that we see kunde 2 well drillied, and that rig we were waiting for at SL1 was used there, and was delayed there.. and the kunde 2 was shut in.

the rig comes to our site, and by september we are told there are shows,, and couchy then decided to post away the 100 wells on oil..

how did couchy know?? well TCEI knew and the jvp's knew and he was simply declaring in his excited ways
how many wells they could potentially see immediately.

conocophillips puts in a permit for a horizontal well.. kunde 3.. and drills it late may.

late june EME announces they have spudded the well, calls it some mumbo jumbo name, no further announcements nor updates..


UNTIL.................


the jvp's announce sugarkane discovery.

the discovery is valid as they know the wells are commercial. kunde 3 must be commercial or its no discovery..

now the jvp's are in a situation where they have the eastern part of the sugarkane field, and cant as yet announce officially any details or reserves as they have no results from SL1..

they have kept SL1 on ice for a long time whilst buying acreages across karnes and liveoak..

right now the sp is at an absolute steal, there is no way sugarkane is 170bcf, the horizontals are able to and kunde 3 must have deiivered some very favourable results..

We see TCEI and outr JVP now go ahead and drill into the sugarkane play with a horizontal well right next door to kunde 1,2 & 3.. and TCEI is a jvp in those wells..

So how certain are they?

SL1 is, as far as the jvp's and TCEI concerned, right on the sugarkane discovery.. and we have acreages going east from the SL1 well...

I am certain that given all the money that conocophllips and TCEI has thrown at the sugarkane discovery, that they are certain of a lot of things right now, and better still, they have the acreages sewn up so that all they know can be only delivered into their hands and not to any competitors!!

we have all the acreage of the eastern reaches of the sugarkane discovery..

"Study of regional seismic and well information by Texas Crude Energy Inc. (“TCEI” – operator of the Sugarloaf Joint Venture) suggests the Sugarkane Field is extensive and, as recently announced, the Sugarloaf Joint Venture has now secured a total of around
20,000 acres of leases (of which Adelphi has a 20% interest) which cover portion of the interpreted eastern extension of the Sugarkane Field"

Sugarkane = bluesky!!